US nears full withdrawal from Iraq as Middle East geopolitical shifts put risk assets in focus

The US military has already pulled its Patriot air defense systems out of Iraq, and the roughly 2,000 American troops still stationed at Harir Air Base in the Kurdistan Region are set to leave by September 30, 2026. US forces completed their withdrawal from federal Iraqi territory by January 19, 2026, vacating installations including the al-Asad Airbase. The remaining contingent in Kurdistan represents the final phase of a drawdown that traces back to a bilateral agreement struck in September 2024. Iraqi Prime Minister Ali al-Zaidi met with US President Donald Trump on July 14, 2026, reaffirming the September deadline. Al-Zaidi framed the withdrawal as part of a broader package: troops leave, US companies come in, and efforts to disarm militia groups get prioritized. Iraq is OPEC’s second-largest producer. Any shift in its security posture sends ripples through energy markets. Energy markets, in turn, are one of the most reliable transmission mechanisms for macro volatility into risk assets like crypto. Previous US withdrawals offer a useful template. The 2011 pullout preceded a period of significant regional instability, including the rise of ISIS, which eventually required a retu...